The proliferation of plastic transaction cards, which typically allow the cardholder to pay with credit rather than cash, started in the United States in the early 1950s. Initial transaction cards were often restricted to select restaurants and hotels and were often limited to an exclusive class of individuals. Since their introduction, the use of transaction cards have rapidly proliferated from the United States, to Europe, and then to the rest of the world. Transaction cards are not only information carriers, but also typically allow a consumer to pay for goods and services without the need to possess or distribute cash. Moreover, if a consumer needs cash, many transaction cards allow access to funds through an automatic teller machine (ATM).
Stored value cards, charge cards and credit cards are examples of transaction cards that can be used to provide cash equivalent value within an existing payment/transaction infrastructure. Stored value cards are frequently referred to as prepaid or cash cards, in that money is deposited in the account associated with the card before use of the card is allowed. For example, if a cardholder deposits ten dollars of value into the account associated with the card, the card can be used for payments up to ten dollars. In contrast, credit cards are backed not by cash, but by a line-of-credit that has been issued to the cardholder by a financial institution. As such, upon use of the credit (or charge) card, the cash payment from the cardholder is required after the purchase from the merchant, namely, when the cardholder is billed for using the line-of-credit associated with the card.
Transaction cards also reduce the exposure to the risk of cash loss through theft and reduce the need for currency exchanges when traveling to various foreign countries. Due to the advantages of transaction cards, hundreds of millions of cards are now produced and issued annually, thereby resulting in the need for companies to differentiate their cards from competitor's cards. Moreover, due to the popularity of transaction cards, numerous companies, banks, airlines, trade groups, sporting teams, clubs and other organizations have developed their own transaction cards. As such, many companies continually attempt to differentiate their transaction cards and increase market share not only by offering more attractive financing rates and low initiation fees, but also by offering unique, aesthetically pleasing features on the transaction cards. As a result, consumers are possessing more transaction cards, using them with a variety of service establishments and for a variety of transaction events. As such, consumers usually possess multiple transaction cards for multiple purposes, with many consumers carrying five, ten or even more transaction cards while shopping. However, consumers are becoming increasingly frustrated with the inconvenience of having to carry multiple cards. Thus, there is a need within the transaction card industry to have a single card that can be used with multiple accounts.
Moreover, financial services companies are offering an increasing number of services to their consumers, including, for example, email notifications, biometric authorization, use of certain transaction cards or accounts at certain merchants, and customized spending limitations. However, consumers may not need to use all of the services for each transaction. As such, a need exists for enabling a consumer to conveniently instruct a financial institution to access or activate specific services during a particular time period or during a particular transaction.